Question 1

In terms of equity, existing farm policies tend to help:

Accepted Answer

A)  all farmers equally. 
B)  none of the farmers. 
C)  poor farmers more than wealthy farmers. 
D)  wealthy farmers more than poor farmers. 
A)  all farmers equally. 
B)  none of the farmers. 
C)  poor farmers more than wealthy farmers. 
D)  wealthy farmers more than poor farmers. D

Question 2

A price that the government guarantees farmers will receive for a particular crop is a(n):

Accepted Answer

A)  price ceiling. 
B)  price support. 
C)  deficiency price. 
D)  export price. 
A)  price ceiling. 
B)  price support. 
C)  deficiency price. 
D)  export price. B

Question 3

The regime changes in Tunisia, Egypt, and Libya through 2011 resulted in:

Accepted Answer

A)  an increase in the demand for oil and an increase in price. 
B)  a decrease in the demand for oil and a decrease in price. 
C)  an increase in the supply of oil and a decrease in price. 
D)  a decrease in the supply of oil and an increase in price. 
A)  an increase in the demand for oil and an increase in price. 
B)  a decrease in the demand for oil and a decrease in price. 
C)  an increase in the supply of oil and a decrease in price. 
D)  a decrease in the supply of oil and an increase in price. D

Question 4

-(Exhibit: The Market for Health Care) When the price of P2 becomes available to the consumer because of insurance:

Accepted Answer

A)  health-care costs are now OP3BQ2, of which OP3CQ2 is paid by consumers and P2P3BQ2 is paid by insurance. 
B)  health-care costs are now OP3BQ2, of which P2P3BQ2 is paid by consumers and OP2CQ2 is paid by insurance. 
C)  the new quantity of health care is Q2. 
D)  the new quantity of health care is Q1. 
A)  health-care costs are now OP3BQ2, of which OP3CQ2 is paid by consumers and P2P3BQ2 is paid by insurance. 
B)  health-care costs are now OP3BQ2, of which P2P3BQ2 is paid by consumers and OP2CQ2 is paid by insurance. 
C)  the new quantity of health care is Q2. 
D)  the new quantity of health care is Q1.

Question 5

In the 1960s the dominant maker of mainframe computers was:

Accepted Answer

A)  IBM. 
B)  Apple Computer. 
C)  Compaq. 
D)  GM. 
A)  IBM. 
B)  Apple Computer. 
C)  Compaq. 
D)  GM.

Question 6

The demand curve for stocks shows that:

Accepted Answer

A)  at lower prices, less stock will be purchased. 
B)  at lower prices, more people calculate that the expected value of the firm's future earnings justify the stock's purchase. 
C)  at lower prices, more stock will be offered on the market. 
D)  A and B are true. 
A)  at lower prices, less stock will be purchased. 
B)  at lower prices, more people calculate that the expected value of the firm's future earnings justify the stock's purchase. 
C)  at lower prices, more stock will be offered on the market. 
D)  A and B are true.

Question 7

A market price support policy attempts to assist the farm industry by:

Accepted Answer

A)  taxing the incomes of farmers. 
B)  directly subsidizing the incomes of farmers. 
C)  establishing price floors in farm output markets. 
D)  reducing the amount of resources used in farm production. 
A)  taxing the incomes of farmers. 
B)  directly subsidizing the incomes of farmers. 
C)  establishing price floors in farm output markets. 
D)  reducing the amount of resources used in farm production.

Question 8

-(Exhibit: Supply and Demand in Agriculture) If the government set an effective price floor at one of the prices shown on the vertical axis:

Accepted Answer

A)  Q3 bushels of wheat would be supplied. 
B)  with this much wheat on the market, the price would fall to P1. 
C)  the resulting shortage would be made up by the government out of its accumulated stocks. 
D)  all of the above would be true. 
A)  Q3 bushels of wheat would be supplied. 
B)  with this much wheat on the market, the price would fall to P1. 
C)  the resulting shortage would be made up by the government out of its accumulated stocks. 
D)  all of the above would be true.

Question 9

A persistent shortage may occur if:

Accepted Answer

A)  the government imposes a price ceiling. 
B)  a price floor is imposed. 
C)  demand keeps falling. 
D)  all of the above occur. 
A)  the government imposes a price ceiling. 
B)  a price floor is imposed. 
C)  demand keeps falling. 
D)  all of the above occur.

Question 10

Rent controls:

Accepted Answer

A)  almost always help low-income families find low-cost housing. 
B)  often help high-income families. 
C)  cause the quantity supplied to exceed the quantity demanded. 
D)  result in all of the above. 
A)  almost always help low-income families find low-cost housing. 
B)  often help high-income families. 
C)  cause the quantity supplied to exceed the quantity demanded. 
D)  result in all of the above.

Question 11

Describe in general the health-care industry. In your discussion, explain the peculiarities of health care, demand and supply factors, and the major problems of the industry.

Accepted Answer

The health-care industry is a complex an

Question 12

Which of the following would lead to an increase in the demand for health care?

Accepted Answer

A)  Physicians' productivity increases. 
B)  Medicare subsidies are lowered. 
C)  The average population age increases. 
D)  Subsidies for Medicare are reduced. 
A)  Physicians' productivity increases. 
B)  Medicare subsidies are lowered. 
C)  The average population age increases. 
D)  Subsidies for Medicare are reduced.

Question 13

Health-care spending as a percentage of total U.S. output generally rose between 1960 and 2009.

Accepted Answer

A) True 
 B)False

Question 14

In agriculture around the year 2008 farm prices reached record _____ and Congress _____ subsidy payments to farmers.

Accepted Answer

A)  lows; decreased 
B)  lows; increased 
C)  highs; increased 
D)  highs; decreased 
A)  lows; decreased 
B)  lows; increased 
C)  highs; increased 
D)  highs; decreased

Question 15

-(Exhibit: The Market for Health Care) Based on the exhibit and assuming that there are no third-party payers:

Accepted Answer

A)  the equilibrium quantity is Q2. 
B)  the equilibrium quantity is Q1. 
C)  the total amount spent on health-care services at the equilibrium price is given by the area OP3BQ2. 
D)  none of the above are true. 
A)  the equilibrium quantity is Q2. 
B)  the equilibrium quantity is Q1. 
C)  the total amount spent on health-care services at the equilibrium price is given by the area OP3BQ2. 
D)  none of the above are true.

Question 16

A maximum legal price is called:

Accepted Answer

A)  a price support. 
B)  a price floor. 
C)  a price ceiling. 
D)  the parity price. 
A)  a price support. 
B)  a price floor. 
C)  a price ceiling. 
D)  the parity price.

Question 17

-(Exhibit: Supply and Demand in Agriculture) If a price floor at P4 is set to help farmers in terms of income and government wants to assure farmers that their output will be purchased, the government would have to purchase an amount of output equal to:

Accepted Answer

A)  Q3 - Q0. 
B)  Q3 - Q1. 
C)  Q2 - Q1. 
D)  none of the above are correct. 
A)  Q3 - Q0. 
B)  Q3 - Q1. 
C)  Q2 - Q1. 
D)  none of the above are correct.

Question 18

Which of the following statements concerning insurance for health-care services is true?

Accepted Answer

A)  Most workers purchase their own insurance. 
B)  State governments are the providers of Medicare and Medicaid. 
C)  In the United States, only private firms provide health insurance. 
D)  Subscribers to insurance plans may pay a small percentage of the cost of the health care they consume. 
A)  Most workers purchase their own insurance. 
B)  State governments are the providers of Medicare and Medicaid. 
C)  In the United States, only private firms provide health insurance. 
D)  Subscribers to insurance plans may pay a small percentage of the cost of the health care they consume.

Question 19

-(Exhibit: Third-Party Payers) When the price of $20 per visit becomes available to the consumer because of insurance:

Accepted Answer

A)  health-care costs become $180 million, of which $60 million is paid by consumers and $120 million is paid by insurance. 
B)  health-care costs become $180 million, of which $120 million is paid by consumers and $60 million is paid by insurance . 
C)  the new quantity of physician office visits is 1 million visits per week. 
D)  both A and C are true. 
A)  health-care costs become $180 million, of which $60 million is paid by consumers and $120 million is paid by insurance. 
B)  health-care costs become $180 million, of which $120 million is paid by consumers and $60 million is paid by insurance . 
C)  the new quantity of physician office visits is 1 million visits per week. 
D)  both A and C are true.

Question 20

One source of high health care costs is the:

Accepted Answer

A)  relatively large fraction of health care expenditures paid directly by patients. 
B)  relatively large fraction of health care expenditures paid by third-party payers. 
C)  deficiency in the availability of hospital beds. 
D)  deficiency in the availability of diagnostic tests. 
A)  relatively large fraction of health care expenditures paid directly by patients. 
B)  relatively large fraction of health care expenditures paid by third-party payers. 
C)  deficiency in the availability of hospital beds. 
D)  deficiency in the availability of diagnostic tests.

In terms of equity, existing farm policies tend to help:

A price that the government guarantees farmers will receive for a particular crop is a(n):

The regime changes in Tunisia, Egypt, and Libya through 2011 resulted in:

-(Exhibit: The Market for Health Care) When the price of P₂ becomes available to the consumer because of insurance:

In the 1960s the dominant maker of mainframe computers was:

The demand curve for stocks shows that:

A market price support policy attempts to assist the farm industry by:

-(Exhibit: Supply and Demand in Agriculture) If the government set an effective price floor at one of the prices shown on the vertical axis:

A persistent shortage may occur if:

Rent controls:

Describe in general the health-care industry. In your discussion, explain the peculiarities of health care, demand and supply factors, and the major problems of the industry.

Which of the following would lead to an increase in the demand for health care?

Health-care spending as a percentage of total U.S. output generally rose between 1960 and 2009.

In agriculture around the year 2008 farm prices reached record _ and Congress _ subsidy payments to farmers.

-(Exhibit: The Market for Health Care) Based on the exhibit and assuming that there are no third-party payers:

A maximum legal price is called:

-(Exhibit: Supply and Demand in Agriculture) If a price floor at P₄ is set to help farmers in terms of income and government wants to assure farmers that their output will be purchased, the government would have to purchase an amount of output equal to:

Which of the following statements concerning insurance for health-care services is true?

-(Exhibit: Third-Party Payers) When the price of $20 per visit becomes available to the consumer because of insurance:

One source of high health care costs is the:

Economics: the Study of Choice

Demand and Supply

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Economic Development

Socialist Economies in Transition

Filters

Exam 4: Applications of Demand and Supply

In terms of equity, existing farm policies tend to help:

A price that the government guarantees farmers will receive for a particular crop is a(n):

The regime changes in Tunisia, Egypt, and Libya through 2011 resulted in:

-(Exhibit: The Market for Health Care) When the price of P2 becomes available to the consumer because of insurance:

In the 1960s the dominant maker of mainframe computers was:

The demand curve for stocks shows that:

A market price support policy attempts to assist the farm industry by:

-(Exhibit: Supply and Demand in Agriculture) If the government set an effective price floor at one of the prices shown on the vertical axis:

A persistent shortage may occur if:

Rent controls:

Describe in general the health-care industry. In your discussion, explain the peculiarities of health care, demand and supply factors, and the major problems of the industry.

Which of the following would lead to an increase in the demand for health care?

Health-care spending as a percentage of total U.S. output generally rose between 1960 and 2009.

In agriculture around the year 2008 farm prices reached record _____ and Congress _____ subsidy payments to farmers.

-(Exhibit: The Market for Health Care) Based on the exhibit and assuming that there are no third-party payers:

A maximum legal price is called:

-(Exhibit: Supply and Demand in Agriculture) If a price floor at P4 is set to help farmers in terms of income and government wants to assure farmers that their output will be purchased, the government would have to purchase an amount of output equal to:

Which of the following statements concerning insurance for health-care services is true?

-(Exhibit: Third-Party Payers) When the price of $20 per visit becomes available to the consumer because of insurance:

One source of high health care costs is the:

Economics: the Study of Choice

Demand and Supply

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Economic Development

Socialist Economies in Transition

Filters

-(Exhibit: The Market for Health Care) When the price of P₂ becomes available to the consumer because of insurance:

In agriculture around the year 2008 farm prices reached record _ and Congress _ subsidy payments to farmers.

-(Exhibit: Supply and Demand in Agriculture) If a price floor at P₄ is set to help farmers in terms of income and government wants to assure farmers that their output will be purchased, the government would have to purchase an amount of output equal to: